WILL TARIFFS GO UP OR DOWN?
HOW ABOUT INTEREST RATES, ENERGY COSTS, AND SHIPPING FEES FROM COUNTRIES LIKE CHINA AND INDIA?
There has been a lot of volatility in all these categories over the last few years, and every single one of them plays a huge role in herbicide, insecticide, and fungicide costs.
WHILE I CAN’T PREDICT THE FUTURE, THERE ARE TWO THINGS I CAN TELL YOU WITH GREAT CERTAINTY…
1.
Ag chemical manufacturers always have prepay programs, meaning their prices are less in December than May or June. Most of these companies also have fill programs for product that gets shipped in July/August/September and in some cases all through the fall.
2.
Additionally, here at Hefty’s we offer price protection on any non-glyphosate ag chemical purchased from September 1, 2025 through April 30, 2026. Just this past year, if you would have prepaid in September instead of buying in May, here is the approximate cost if you bought commonly used products for corn and soybeans each for 1000 acres.
- CORN: Surtain, Status, Roundup, MegaGro, AMS, and Veltyma
- SOYBEANS: Trifluralin, Metribuzin, Valor, Anthem Maxx, Liberty, AMS, MegaGro, Ridgeback, Clethodim, and Lucento
TOTAL SEPTEMBER 2024 COST = $124,230
TOTAL MAY 2025 COST = $139,670
- SAVINGS IF YOU WOULD HAVE PURCHASED IN SEPTEMBER = $15,440, which is 12.4%!!
- APR SAVINGS. 12.4% divided by 8 months times 12 months = 18.65% APR!!
You may not want to buy all your inputs in September, but each year I get so many farmers who ask me to help them save money. This is an absolute, guaranteed way to save money. Buy your ag chemical inputs in September instead of May. This past year, it saved $15,440 for a 2000-acre farm in my example above. Because of our price protection, you have no downside risk. Even if you have to borrow money at 7%, 8%, or more, you come out way ahead; and on the financing side, you should be able to finance almost all the products I listed for 0% starting in either September or by October 1. Take advantage of the fact that the companies want to sell product early. They are incentivizing you to do so!
SHOULD YOU RE-ASSESS YOUR HERBICIDE PROGRAM??
In my region, here are 3 big things that may impact your herbicide decisions for next year.
1.
HPPD RESISTANCE IS REAL. In corn, weed control was subpar this spring because the HPPDs (Callisto, Laudis, Impact, etc.) aren’t controlling weeds like they used to. Plus, if you think you’ll just increase the rate of the HPPD, that will almost certainly lead to a carryover issue if you will be raising a broadleaf crop the following season. Status, DiFlexx, or some form of dicamba post-emerge probably needs to be used in corn moving forward, along with a better pre. That’s why in my list of products above I included Surtain (Zidua plus Sharpen) as a great pre-plant option and Status as a fantastic post-emerge choice.
2.
WATERHEMP IS OFFICIALLY THE WORST WEED WE’VE EVER SEEN. Waterhemp can put on 1 million seeds per plant, grow 2 to 3 inches per day, and tolerate Roundup, ALS chemistries, and now HPPDs. If you want to stop this tough weed, especially in soybeans, you need at least 3 or 4 effective modes of action, and 5 or 6 would be better. In soybeans, we recommend starting with the 3 Pre’s (Trifluralin, Valor, and Metribuzin are listed earlier) and follow with a Group 15 plus a PPO (I listed Anthem Maxx earlier). After that, depending on your trait, use Liberty along with anything else you can, possibly Enlist One, Roundup, and maybe even dicamba again next year if it’s labeled. You have to stay ahead of waterhemp, because once it is over 4 inches tall, it’s very hard to control.
3.
KOCHIA POPULATIONS CONTINUE TO GROW IN WHEAT FIELDS. If you absolutely have to get kochia stopped in wheat, the answer is simple, but not cheap. Use Zidua (or Anthem Flexx) plus Sharpen pre-emerge. Then follow with either Huskie Fx or WideARmatch sprayed early post. This should eliminate your kochia problem for the season.
Part of the reason I wanted to mention these possible changes you should at least consider is when it comes to flexibility, we can help you. When you prepay in September, December, or anytime with us, we will honor that prepay price up to the dollar amount you prepaid for any crop protection product you want to buy, other than glyphosate. On all other non-glyphosate chemical products, we’ll lock in your price, so if you want to swap out your Callisto for Status or anything else, for example – that’s fine with us. If you aren’t sure exactly what you should do next season to keep your costs down yet still get great weed control, we’re here to help. Just because you prepay with us, that doesn’t mean you have to take any certain product. Yes, glyphosate is the exception to that, but in terms of anything else, we will work with you to make sure you get what you need for your farm so you can maximize yields and minimize costs.
PLEASE TALK TO US ABOUT PREPAYING IN SEPTEMBER. I KNOW IT’S EARLY, BUT IF YOU ARE SERIOUS ABOUT CUTTING INPUT COSTS, NOW IS THE BEST TIME TO DO IT.